Who won't be affected

get Universal Credit because of a disability or health condition that stops you from working (this is called ‘limited capability for work and work-related activity’)

get Universal Credit because you care for someone with a disability

get Universal Credit and you and your partner earn more than £542 a month combined, after tax and National Insurance contributions

You’re also not affected by the cap if you, your partner or any children under 18 living with you gets:

Armed Forces Compensation Scheme

Armed Forces Independence Payment

Attendance Allowance

Carer’s Allowance

Disability Living Allowance (DLA)

Employment and Support Allowance (if you get the support component)

Guardian’s Allowance

Industrial Injuries Benefits (and equivalent payments as part of a War Disablement Pension or the Armed Forces Compensation Scheme)

Personal Independence Payment (PIP)

War pensions

War Widow’s or War Widower’s Pension

If you are at risk of being capped

If the Department for Work and Pensions (DWP) thinks you are at risk of being capped, based on your current circumstances, they will write to you to explain this. Bear in mind the DWP may not have the most up-to-date information about you when they write to you. Your circumstances may also change between after April 2013.

The DWP has set up a Helpline to help answer questions about the cap. The number is 0845 605 7064 (8am to 6pm) or textphone 0845 608 8551 for people with hearing or speech impairments. However, the Helpline will only be able to signpost you to your local authority for housing options advice, or to Jobcentre Plus for help in finding work. They won't be able to tell you about how much benefit you are getting or how much you will lose.

Check how much benefit you are entitled to now to find out how much Housing Benefit you are likely to lose when the cap is applied next year. This may affect which options you need to consider. An online calculator is available on the Directgov website at www.dwpe-services.direct.gov.uk. You can use this to estimate how much Housing Benefit you will lose if your total benefit income is more than the cap.

Consider whether your circumstances are likely to change after April 2013. For example, do you have a child who will soon be treated as financially independent of you? When this happens, your benefits may go down, which may bring you under the limit of the cap or mean that you are less affected by the cap.

On the other hand if, for example, you're expecting a baby, your benefits may go up. This could push you over the limit of the cap.

You may need to consider one of the following options:

can you or your partner get work, or increase your hours of work, so that you can claim Working Tax Credit? This would mean the cap would not apply to you

can anybody in your household get one of the benefits that mean that the cap won't apply to you, or that some of your benefits won't be counted?

can you move to cheaper accommodation or negotiate a rent reduction with your landlord?

What you can do if you are capped

apply for a Discretionary Housing Payment from your council. If you can get one, this may help in the short term to pay your rent, or pay for a deposit or removal expenses to help you move to cheaper accommodation

if you have a disabled child or a child whose health or development is likely to be damaged because of the reduction in your benefit, contact your council's Children's Services Department. They may be able to help with a cash payment or other assistance

Link to this page for everyone's benefit if you found it useful - see Link to us